With mortgage rates back around 7%, it is understandable that San Diego buyers are asking a very specific question: should I wait until 2027 to buy a house?
There is no reliable way to know whether waiting will produce a lower purchase price, a lower mortgage rate, or both. What buyers can do is compare the tradeoffs of buying now with the risks of waiting for a market that may look different next year.
Where mortgage rates are right now
Freddie Mac reported that the average 30-year fixed mortgage rate was 7.03% on September 24, 2026, up from 6.30% a year earlier. That higher borrowing cost has changed what many buyers can afford and has pushed some would-be buyers to the sidelines.
That can create a strange market: financing is more expensive, but buyers who remain active may face less competition than they would if rates suddenly dropped.
Are San Diego home prices actually falling?
Not across the board. Realtor.com’s September 2026 San Diego market summary reported a median listing price of about $800,000, down 8.82% from a year earlier, while the median sold price was about $1,000,000, up 4.30% year over year. Active listings were up 3.72% year over year.
That is exactly why headlines like “prices are falling” can be misleading. Asking prices, sold prices, inventory and individual neighborhoods can move in different directions at the same time.
What could happen if mortgage rates fall in 2027?
A lower mortgage rate would reduce the monthly payment on the same loan amount. But lower rates can also improve purchasing power for thousands of other buyers. In a supply-constrained market like San Diego, that can mean more showings, more offers and less negotiating leverage on desirable homes.
So a buyer who waits for a lower rate could end up with cheaper financing but a higher purchase price or more competition. That outcome is not guaranteed, but it is an important counterweight to the idea that waiting automatically saves money.
What could happen if rates stay high?
If rates remain elevated, some sellers may continue to face a smaller buyer pool. Depending on the property, that can create opportunities for price reductions, seller credits, repair negotiations or mortgage-rate buydowns.
It does not mean every seller will negotiate or every home will decline in value. San Diego is highly neighborhood-specific, and limited inventory can still support prices in desirable areas.
Four reasons waiting until 2027 could make sense
- You need more cash. Another several months could help you build a down payment, closing-cost funds and emergency reserves.
- Your current payment would be uncomfortable. A home should work at the terms available when you buy, not only if refinancing becomes possible later.
- Your job or location may change. Buying is less attractive if you may need to move again soon.
- Your credit or debt profile is likely to improve. Paying down debt or strengthening credit can sometimes improve the financing options available to you.
Four reasons buying before 2027 could make sense
- You can comfortably afford the home today. You are not depending on a future refinance to make the payment work.
- You find a property that fits your long-term needs. The right property can matter more than perfectly timing a market cycle.
- You have negotiating leverage. A slower listing may offer opportunities for seller credits, repairs or other concessions.
- You expect to stay for several years. A longer holding period gives you more time to absorb normal market fluctuations and transaction costs.
Do not base the decision on a 2027 rate forecast
Mortgage-rate forecasts change frequently because rates respond to inflation, Treasury yields, economic growth, employment, Federal Reserve policy and financial-market expectations. Even professional forecasts can be wrong.
For that reason, a purchase should generally make sense using the rate, payment and cash requirement available today. If rates later fall enough to make refinancing worthwhile, that can be evaluated then.
A better way to compare “buy now” vs. “wait”
Instead of asking whether 2027 will be cheaper, compare scenarios. For example:
- What is the payment on a home you would realistically buy today?
- How much seller credit could potentially be negotiated?
- How much additional cash could you save by waiting six to twelve months?
- What happens if the rate is lower next year but the home costs more?
- What happens if rates are similar and the property you wanted is no longer available?
A mortgage professional can model those scenarios without pretending to know what the market will do.
What this means for San Diego buyers
San Diego’s current market does not support a simple story that “high rates mean home prices will fall.” Recent data shows softer asking prices alongside higher sold prices, which suggests buyers need to evaluate the specific property, neighborhood and financing structure rather than rely on a national headline.
If you are weighing a purchase now, start with our guide to buying when interest rates are high and our San Diego buyer’s-market guide. You can also compare San Diego mortgage options to see which programs may fit your scenario.
Sources: Freddie Mac Primary Mortgage Market Survey, September 24, 2026; Realtor.com San Diego market summary, September 2026.
Frequently asked questions
Will mortgage rates be lower in 2027?
No one can know with certainty. Mortgage rates respond to inflation, economic growth, the bond market and Federal Reserve policy, among other factors. A future rate decline is possible, but it should not be assumed when deciding whether a payment is affordable today.
Will San Diego home prices fall in 2027?
That cannot be predicted reliably. Recent San Diego data has been mixed, with softer listing prices but higher median sold prices year over year. Local inventory, neighborhood demand and the broader economy can all affect prices.
Is it smarter to wait for rates to drop before buying?
Sometimes, but not automatically. Lower rates can improve affordability while also bringing more buyers back into the market. The better question is whether a home and payment work for your budget, timeline and cash reserves today.
Can I buy now and refinance in 2027?
Possibly, but refinancing is never guaranteed. Future rates, property value, equity, income, credit, lender guidelines and closing costs will all matter at that time.
This article is for general educational purposes only and is not financial, tax, legal or investment advice, a commitment to lend, or a prediction of future mortgage rates or home prices. Market conditions, rates, program guidelines and eligibility can change. Consult appropriate professionals for advice about your individual situation.